CSE Report Hints At The Bottlenecks In India’s Bio-CNG Production

GPS Renewables Secures Rs 411.50 Crore Debt-Financing

A recent report by the Centre for Science and Environment (CSE), a New Delhi-based think tank, hinted towards several bottlenecks which are throttling the growth of bio-CNG (a biofuel) in India.

The latest study showed that there are problems in the assured takeaway of the bio-CNG produced by the producers, almost no procurement of the biogas fertilizer, produced during the production of bio-CNG in the factories, unregulated biomass supply chain, financing bio-CNG initiatives at a higher cost, inefficient source segregation of feedstock, low in-house manufacturing of plant equipment and lack of single-window clearance for such projects.

Bio-CNG, called Compressed Bio Gas (CBG), is produced by removing the impurities in biogas like carbon dioxide. Bio-CNG is used directly in CNG vehicles and as a cooking gas in the city gas distribution networks. Moreover, its bio-fertilizer, produced as waste, is also used as an excellent organic source of fertilizers.

The report said bio-CNG is one of the best renewable energy sources to decarbonize the gas ecosystem. “Compressed biogas (CBG), which can be integrated into the existing gas infrastructure, provides the easiest route to decarbonizing natural gas applications. The use of biomethane reduces the total cost of ownership of the energy system as the infrastructure for distribution and usage is already in place. Additionally, anaerobic digestion produces not only biogas, but also digestate that can be utilized as a renewable biofertilizer locally, either directly or after upgrading. The CO2 that needs to be separated from the biogas to obtain biomethane can also be valued as a co-product,” the report said.

The study recommended that expanding city gas distribution with their linkage with the CBG could offer significant benefits like a reliable market for the sector. In addition, the CSE report claimed that the government should develop a policy where a fertilizer company can purchase these bio-CNG fertilizers at a fixed price.

The report also demanded more sophisticated and decentralized biomass management equipment at the village level to counter the unregulated biomass supply chain issue. On the subject of a shortage of financing for bio-CNG initiatives at affordable costs, the report said that lower rates of interest from both public and private banks were needed to give an impetus to the sector.